LLP define by online LLP registration In India Portal

Partnerships are the most common business structure for businesses that have more than one owner. Many businesses, ranging from retail stores to accounting firms, are structured as partnerships. A business partnership is a for-profit business established and run by two or more individuals. There can be any number of partners involved in the business, as long as there are at least two. A business partner is a co-owner of the business. For LLP registration online in India consult to online LLP registration in India portal experts.

Most business partnerships are general partnerships, this means that general partners share both the benefits and the detriments of the business. For online formation of LLP in india consult LLP registration portal experts.

A limited liability partnership is a newer form of business partnership where all of the owners have limited personal liability for the financial obligations of the business. A Limited Liability Partnership or LLP is an alternative corporate business form which offers the benefits of a limited liability to the partners at low compliance costs. It also allows the partners to organize their internal structure like a traditional partnership. A limited liability assets. The liability of the partners, however, is limited. Hence, LLP is a hybrid between a company and a partnership. Know more about limited liability Partnership Agreement in India on Online LLP registration in India.

Concluding, LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership, can continue its existence irrespective of changes in partners. no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct. Get online incorporation of LLP in India through online LLP registration in India portal.

Furthermore The Law defines LLP as followed

” A corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in flexible, innovative and efficient manner, providing benefits of limited liability while allowing its members the flexibility of organizing their internal structure as partnership”

What are different types of Company Registration in India? By Online LLP Registration in India Portal

Private Limited Company: A Private Limited Company is perhaps the most sought after entity form that startups (and most companies in India) use. It is a distinct legal entity, different from its shareholders.

Public Limited Company – A public company means a company which is not a private company. Only the shares of a public company are capable of being dealt in on a stock exchange. Get your online LLP agreement.

One Person Company: OPC was introduced in the Companies Act, 2013 to support entrepreneurs who on their own are capable of starting a venture by allowing them to create a single person economic entity. Partnership: The partnership is the relation between persons who have agreed to share the profits of the business carried on by all or any one of them acting for all. This type of firm is registered under Indian partnership act,1932.

Limited Liability Partnership Registration: As the name suggests, LLP allows the scope to have limited liability. In an LLP, one partner is not responsible or liable for another partner’s misconduct or negligence. Forms the perfect structure for Professional services, ad agencies, marketers, and other skill based services. Read more about online LLP formation in India on online LLP registration in India portal.

Sole Proprietorship – A sole proprietorship, perhaps the easiest way of starting a business, is nothing more than the proprietor itself.

Partnership – A partnership firm is (relatively) more structured and requires registration under the Indian Partnership Act, 1932. Two to 20 partners come together, decide their contributions, duties, salaries, etc., sign a partnership deed and register it with the Registrar of Partnerships.

Hence the type of company decides the registration and governing or regulating act for such an aforesaid companies.

Know about Online LLP Registration in India

Limited Liability Partnership (LLP) was introduced in India by way of the Limited Liability Partnership Act, 2008. The basic premise behind the introduction of Limited Liability Partnership (LLP) is to provide a form of business entity that is simple to maintain while providing limited liability to the owners. Since, its introduction in 2010, LLPs have been well received with over 1 lakhs registrations so far until September, 2014. Get to know more on online LLP registration Procedure India on online LLP registration in India.

Limited Liability Partnership firm have become most popular among all types of companies being registered, as it provides a dual functionality and perks of a partnership and that of limited liability. Read more on Online LLP agreement on online LLP registration in India portal.

LLP is one of the easiest form of business to incorporate and manage in India. With an easy incorporation process and simple compliance formalities, LLP is preferred by Professionals, Micro and Small businesses that are family owned or closely-held. Since, LLPs are not capable of issuing equity shares, LLP should be used for any business that has plans for raising equity funds during its life cycle. For online LLP registration in India or LLP formation in India visit online LLP registration In India portal.

Eligibility for the same is:

Any two or more persons can form a LLP for the purpose of carrying on any business, trade, profession, service or occupation. Even a limited company, a foreign company, a LLP, a foreign LLP or a non-resident can be a partner in LLP. As per the recent clarification, a Hindu Undivided Family (HUF) represented by its karta can be a partner of LLP. For online formation of LLP in india consult to online LLP registration in India portal.

LLP’s are only recommended for profit running businesses

Moreover notwithstanding, an LLP is much cheaper. Moreover, you only need to conduct an audit once you have a turnover of over Rs. 40 lakh and paid-up capital of over Rs. 25 lakh. This means that for the price of starting a private limited company you can start and maintain an LLP in its first year. Know about online LLP formation process in India.

Process of Online LLP Registration in India

Step 1 :Application for DIN or DPIN

All designated partners of the proposed LLP shall obtain “Designated Partner Identification Number (DPIN)”.File eForm DIR-3 in order to obtain DIN or DPIN. In case you already have a DIN, the same can be used as a DPIN.

Step 2 :Acquire/ Register DSC

The Information Technology Act, 2000 provides for use of Digital Signatures on the documents submitted in electronic form in order to ensure the security and authenticity of the documents filed electronically. This is the only secure and authentic way that a document can be submitted electronically. As such, all filings done by the LLP(s) are required to be filed with the use of Digital Signatures by the person authorised to sign the documents. Furthermore get certificate authorised by required authorised person. Get your LLP registration in India from online llp registration in India portal.

Later Register DSC – Role check can be performed only after the signatories have registered their Digital signature certificates (DSC) with LLP application.

Step 3 :New User Registration

To file an eForm or to avail any paid service on LLP portal; you are first required to register yourself as a user in the relevant user category, such as registered and business user. Online limited liability partnership registration in India is now can be done through online LLP registration in India portal.

Step 4 : Incorporate a LLP

Apply for the name of the LLP to be registered by filing Form 1 for the same. After that depending upon the proposed LLP, file required incorporation Form 2 Once the form has been approved by the concerned official of the Ministry, you will receive an email regarding the same and the status of the form will get changed to Approved.

Step 5 : File LLP Agreement

an initial LLP agreement is to be filed within 30 days of incorporation of LLP. The user has to file the information in Form 3.

Documents required for Online LLP Registration in India are

A. Documents of Partners

ID Proof of Partners – All the partners are required to provide their PAN at the time of registering LLP. PAN card acts as a primary ID proof.

Address Proof of Partners– Partner can submit anyone document out of Voter’s ID, Passport, Driver’s license or Aadhar Card. Name and other details as per address proof and PAN card should be exactly same. If spelling of own name or father’s name or date of birth is different in address proof and PAN card, it should be corrected before submitting to RoC.

Residence Proof of Partners– Latest bank statement, telephone bill, mobile bill, electricity bill or gas bill should be submitted as a residence proof. Such bill or statement shouldn’t be more than 2 months old and must contain the name of partner as mentioned in PAN card.

Photograph– Partners should also provide their passport size photograph, preferably on white background.

Passport (in case of Foreign Nationals/ NRIs)– For becoming a partner in Indian LLP, foreign nationals and NRIs have to submit their passport compulsorily. Passport has to be notarised or apostilled by the relevant authorities in the country of such foreign nationals and NRI, else Indian Embassy situated in that country can also sign the documents. Get limited liability Partnership Agreement in India from online LLP registration in India portal.

If the documents are in other than the English language, a notarised or apostilled translation copy will be also be attached.

B. Documents of LLP

Proof of Registered Office Address

Proof of registered office has to be submitted during registration, or within 30 days of its incorporation.

Digital Signature Certificate

One of the designated partners needs to opt for a digital signature certificate also since all documents and applications will be digitally signed by the authorised signatory. For consultancy on documents required for LLP registration in India visit online LLP registration in India Portal.

Major Reasons for Online LLP Registrations in India

LLP is a body corporate

According to Section 3 of the Limited Liability Partnership Act (LLP Act), 2008, an LLP is a body corporate formed and incorporated under the Act. It is a legal entity separate from its partners.

Perpetual Succession

Unlike a partnership firm, a limited liability partnership can continue its existence even after the retirement, insanity, insolvency or even death of one or more partners. Further, it can enter into contracts and hold property in its name. Get online LLP agreement through online LLP registration in India portal.

Separate Legal Entity

It is a separate legal entity. Further, it is completely liable for its assets. Also, the liability of the partners is limited to their contribution in the LLP. Hence, the creditors of the limited liability partnership are not the creditors of individual partners.

Artificial Legal Person

For all legal purposes, an LLP is an artificial legal person. It is created by a legal process and has all the rights of an individual. It is invisible, intangible and immortal but not fictitious since it exists.

Common Seal

If the partners decide, the LLP can have a common seal [Section 14(c)]. It is not mandatory though. However, if it decides to have a seal, then it is necessary that the seal remains under the custody of a responsible official. Further, the common seal can be affixed only in the presence of at least two designated partners of the LLP. Read more in detail about common seal on online LLP registration in India portal.

Limited Liability

According to Section 26 of the Act, every partner is an agent of the LLP for the purpose of the business of the entity. However, he is not an agent of other partners. Further, the liability of each partner is limited to his agreed contribution in the Limited Liability Partnership.

E-Filing of Documents

If the entity is required to file any form/application/document, then it needs to be filed in an electronic form on the website www.mca.gov.in. Further, a partner or designated partner has to authenticate the same using an electronic or digital signature. Read more about reasons for LLP registration in India on online LLP registration in India Portal.

Know about the Benefits of Pvt. Ltd. Company Registration in India from Online LLP Registration in India Portal experts

Limited Liability

The Company exists as a separate legal entity as from its members. The liability of the company is different as from its members of a company. Liability for repayment of debts and lawsuits incurred by the Company, lies on it and not the owner. The liability of a company can be divided into 2 major segments

Limited Liability

Liability limited by Shares

Liability Limited by Guarantee

Liability limited both by Shares and by Guarantee

Unlimited Liability

Taxation

As everyone wants to minimize his tax burden thus company as per the income tax act 1961 has another main benefit of incorporation towards taxation. Companies are often taxed at a lower rate and are provided with better taxable benefits as compared to other forms of business organization.

Capacity to sue and be sued

To sue means to institute legal proceedings against or to bring a suit in a court of law. Just as one person can bring a legal action in his/her own name against another in that person’s name, a company being an independent legal entity can sue and also be sued in its own name. To know how to get this benefits consult online LLP registration in India portal experts.

Uninterrupted existence

A company has ‘perpetual succession’, that is continued or uninterrupted existence until it is legally dissolved. A company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership. Perpetual succession is one of the most important characteristics of a company.

Ease of formation

In comparison to public company the process of formation of private limited company is much easier. Online LLP registration Procedure In India explained on online LLP registration In India portal.

Understand various advantage of Company Incorporation in India with online LLP registration in India

Easier access to Capital: Raising capital is easier for a corporation, since a corporation can issue shares of stock. This may make it easier for your business to grow and develop. If the in the market for a bank loan, that’s another reason to incorporate, since n most cases, banks prefer and easily lend money to incorporated business ventures.

Limited liability Protection to Partners Personal assets: In an LLP only investment to start a business is lost, personal assets of the partners are safe

Attract Funding:

“An entrepreneur without funding is a musician without an instrument.” -Robert A. Rice Jr. Today small businesses are being out-competed by larger businesses. Hence, it is essential for all businesses to grow quickly, and have the ability to attract funding from any source. Thus, a private limited company is the ideal type of business entity for growing businesses. For online Incorporation of LLP in India consult to online LLP registration in India portal experts.

Less cost and Ease of formation–

In comparison to public company the process of formation of private limited company is much easier.

No Audit Requirement and Minimal Compliance

Capacity to sue and be sued: The company has the capacity of suing a person or being sued by another person in its own name. A company, though can be sued or sue in its own name, it has to be represented by a natural person and any complaint which is not represented by a natural person is liable to be dismissed in the same way in which an individual complaint is liable to be dismissed in the absence of the complainant.

An Exit Plan: Private limited companies offer the best type of exit strategy for all promoters. Only shares of a company can be sold or transferred in part or whole to another entity easily without any hassles, while the business remains a going concern. Therefore, starting a private limited company provides a tremendous edge in planning and executing a business exit plan.

Pursue Multiple Opportunities: Businesses started as a proprietorship or partnership would have trouble pursuing many opportunities that come their way, as they are not considered separate legal entities and are tied to the promoter. Starting a private limited company, on the other hand, would allow the promoter to pursue multiple opportunities as the business evolves over time.

Separate Legal Entity/ Limited Liability: Your corporation is a separate legal entity and as such, creditors or legal actions are against the corporation and its assets, not your personal assets. The shareholders of a corporation have a limited liability. Please note shareholders can be legally liable for the corporation’s GST/HST and payroll taxes. Get to know more on advantages of company incorporation in India through online LLP registration in India.

Easy Transferability

Transferability or sharing of ownership of a business is a major hurdle in unregistered business entities. Proprietorships cannot be transferred as they are an extension of the proprietor and it is also hard to define the assets belonging to an unregistered partnership firm. On the other hand, in registered business entity like company or LLP, the business is considered a separate legal entity with assets and liabilities that are distinct of its promoters. Hence, transferring or sharing the ownership of a registered business is easy.

FAQ’s about online LLP Registration in India

The formation and regulation of limited liability partnerships is governed by Limited Liability Partnership Act, 2008 and the rules made thereunder i.e. Limited Liability Partnership Rules, 2009, (hereinafter referred to as the “Rules”).

Any change in the partners of a limited liability partnership shall not affect the existence, rights or liabilities of the limited liability partnership.

Thus, forming a limited liability partnership firm is more favourable.

A Limited Liability Partnership is a legal entity separate from its partners and therefore, offers limited liability to its partners whereby any debts and obligations of the LLP will be borne by the assets of the LLP. In the case of a conventional partnership, the partners are jointly and severally liable for each debt and obligation of the partnership firm.

A Limited Liability Partnership may be formed by any group to carry on any lawful business with the view to make profit. As per clause (e) of Section 2(1) of the Act, the term “business” is defined to include every trade, profession, service and occupation.

As per Section 2(1)(m) of the Act, a “foreign limited liability partnership” means a limited liability partnership formed, incorporated or registered outside India which establishes a place of business within India.

No, name of the LLP shall end with either ‘Limited Liability Partnership’ or ‘LLP’. Word ‘limited’ shall be allowed in name only within ‘Limited Liability Partnership’.

General Circular No. 37/2014, dated 14th October, 2014, clarified that the trustee being a body corporate and representing a trust in case of “Real Estate Investment Trust” (REIT) or “Infrastructure Investment Trust” (InvITs) or such other trusts set up under the regulations prescribed under the Securities & Exchange Board of India Act, 1992, is not barred to hold partnership in a LLP in its name without the addition of the statement that it is a trustee.

As per section 5 of the Act, only an individual or body corporate may be a partner in a Limited Liability Partnership. It is further clarified vide MCA General Circular No. 13/2013, dated 29th July, 2013, read with MCA General Circular No. 2/16 dated 15th January, 2016, that an HUF cannot be treated as a body corporate for the purposes of LLP Act, 2008. Therefore, a HUF or its Karta cannot become a partner or designated partner in LLP.

Yes, it mandatory to execute and file LLP Agreement in view of Section 2(0) & (q) , 22 and 23 of the Act.As per provisions of the LLP Act, in the absence of agreement as to any matter, the mutual rights and liabilities shall be as provided for under Schedule I to the Act. Therefore, in case any LLP proposes to exclude provisions/requirements of Schedule I to the Act, it would have to enter into an LLP Agreement, specifically excluding applicability of any or all paragraphs of Schedule I

LLP is required to file LLP Form 8 (Statement of Account & Solvency) and LLP Form 11 (Annual Return) annually. The ‘Annual Return’ is required to be filed within 60 days of close of the financial year and ‘Statement of Accounts & Solvency’ shall be filed within 30 days from the end of six months of the financial year to which it relates. Every LLP has to maintain uniform financial year ending on 31st March of a year.

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